The enlarged Society will have assets of £35bn, providing a competitive and secure alternative to the retail banks. With 2.7 million members and a national network of 178 branches, the merged Society will focus on the traditional building society business of residential mortgages and savings and will be principally retail funded.
The enlarged Society will be known as Yorkshire Building Society with the Chelsea Building Society name retained and operated as a separate and distinct brand within the Yorkshire.
Many analysts believe the geographical fit of branch networks will provide a larger, more diverse and better-balanced national presence in the
savings and
mortgage markets.
The merger also provides Dual Financial Services Compensation Scheme (FSCS) protection (up to £50,000 per individual) for eligible savers who have accounts with both the Yorkshire and Chelsea immediately before completion of the merger (until 30 December 2010).
The Chief Executive of the enlarged Society will be Iain Cornish, currently Chief Executive of Yorkshire Building Society. Ed Anderson, Yorkshire Building Society Chairman, will remain as Chairman. Stuart Bernau, Executive Chairman of Chelsea Building Society, who has led the strategic review of Chelsea, will relinquish his Board position immediately prior to the merger becoming effective.
"Chelsea has an excellent reputation, particularly in the
savings market, and a strong network of branches in the south, said Iain Cornish, Chief Executive of Yorkshire Building Society.
“Combining forces with them will strengthen our ability to deliver value to members through good value products and excellent service, underpinned by our significant financial strength. Together our combined expertise will deliver a competitive, member-owned organisation, which will provide real choice to consumers across the UK.”
The merger is subject to the approval of eligible members from both societies and confirmation by the FSA and the deal is expected to be completed on 1st April 2010.
Follow the link to see which building society is paying the
best rate of interest on your savings?
